After Netflix, Disney+ Tightens Password Sharing Rules in Canada—Here’s What to Know

Inno Flores, Tech Times 28 September 2023, 02:09 am

Starting November 1, Disney+ will tighten its policies in Canada, prohibiting account sharing beyond household members unless additional fees are paid.

Subscribers were informed of this change via email. It is a move previously hinted at by Disney CEO Bob Iger during the company's quarterly earnings call in August.

(Photo : CHRIS DELMAS/AFP via Getty Images)
The Disney+ logo is seen on the backdrop for the "Cheaper by the Dozen" Disney premiere at the El Capitan theatre in Hollywood, California, March 16, 2022.

Disney+ Curbing Account Sharing in Canada

Disney+ is set to implement stricter policies in Canada, curbing account sharing to within household members, with options for additional fees to extend access to outside users. Subscribers received notifications about this change through email, aligning with Bob Iger's announcement in August.

Disney+ is following the lead of Netflix, which initiated a clampdown on password sharing in several countries, including the US, back in May. Engadget reported that the updated Subscriber Agreement defines a household as "the collection of devices associated with your primary personal residence, exclusively for use by its residents."

The company also hinted at forthcoming fee options for those wishing to add non-household members to their accounts, with the rule applying broadly unless otherwise stated in the user's service tier.

Specifics on these fees are yet to be disclosed, but Netflix introduced a precedent with its $8 monthly charge for each additional person. Disney is set to implement price hikes starting on October 12, affecting both standalone subscriptions and bundled services with Hulu.

However, Disney+ will introduce its more affordable ad-supported tier to users in Canada and select European regions starting November 1. This tier has been accessible in the US since 2022. However, this addition may provide little consolation for those facing potential removal from their family's Disney+ accounts.

Disney CEO's Previous Remarks

Bob Iger had initially set a target of 2024 for addressing account-sharing concerns. The Disney CEO said the company's technical capacity to monitor logins and tackle this matter head-on is set in 2024.

Thus, the recent measures in Canada have arrived earlier than expected. CNET reported that it remains uncertain how Disney+ plans to enforce this ban on mobile devices and whether similar actions will be implemented in other regions.

Disney+ Following Netflix's Steps

In 2019, Netflix researchers identified password sharing as a problem impacting their subscriptions. However, Netflix is now facing slower subscriber growth, prompting the company's leadership to address the issue of password sharing among users.

Despite these, Netflix's recent second-quarter earnings report suggests that its measures to combat password sharing produce favorable outcomes. The company reported a significant increase in its worldwide subscriber count, with 5.9 million new members signing up between April and June.

Netflix has revealed a boost in revenue across all its regional markets, with new signups surpassing cancellation rates. One notable trend highlighted by the company is the transition of shared accounts into full-fledged paid Netflix memberships, illustrating a promising trajectory.